1 TO: City Council
FROM: Andrew Vialpando, City Manager
PREPARED BY: Susan Kamada, Administrative Services Director MEETING DATE: October 21, 2025
SUBJECT: Fiscal Year 2024/2025 Year-End Budget Amendments
RECOMMENDED ACTION
Approve the recommendations contained in Attachment 1 and direct staff to make necessary expenditure and revenue budget amendments to implement the recommendations.
BACKGROUND
The City is required to maintain a balanced annual budget. In order to do so, staff annually reviews the year-end financial conditions of the City’s various funds and recommends any necessary adjustments based on actual revenues and expenditures throughout the fiscal year. The City completed its fiscal year 2024/2025 year-end review on October 6, 2025.
DISCUSSION
The Finance Subcommittee met on October 6, 2025, to review the FY 24-25 year end review analysis. After inclusion of the transfers and adjustments recommended by staff, the General Fund is estimated to end the fiscal year with $17,991,710 in revenues and $17,733,392 in expenditures.
Fiscal Year 2024/2025 Adopted Budget
In June 2023 the City Council adopted the annual operating and capital improvement budgets. The adopted budget at Mid-Cycle contains general fund expenditures of $16,373,186 and revenues of $16,373,186, reflecting a balanced budget. Attachment 1 is a summary of all funds expenditure and revenue amendments, which are described in more detail below.
CITY OF LOMITA
CITY COUNCIL REPORT
Item No. 7f
2 Detailed Revenue Amendments
Staff reviewed the status of the City’s major revenue sources to identify variances between budgeted and actual revenues, and to make recommendations for revenue budget amendments. The City’s primary revenue sources include property, sales, and motor vehicle in lieu taxes. The other major revenue source is development related revenue. Each of these sources has seen better than expected revenues over the fiscal year, and as a result staff amendments are necessary to reflect those revenues. Other special revenue funds have also seen better than anticipated revenues during the fiscal year that require an amendment. The following revenue account amendments are being recommended:
Other Funds:
Fund 311 Street Improvement $ 500,000
Fund 312 Facilities Improvement 1,000,000
Fund 610 Equipment Replacement 300,000
Fund 611 Park Eq Replacement 200,000
Fund 612 Sewer Replacement 200,000
Total Budget Amendments $ 2,200,000
Detailed Expenditure Amendments
Staff also reviewed the status of the City’s expenditures to identify potential variances between budgeted and actual expenditures, and to make recommendations for expenditure budget amendments. A review of the General Fund expenditures found several areas where actual year-end expenditures were less than anticipated in the adopted budget. Some special revenues funds have seen an increase in costs during the fiscal year that also require amendment. As a result, the following expenditure account amendments are being recommended:
General Fund:
City Council $ 14,000
Animal Care & Control 35,000
Planning 194,000
Economic Development 3,000
Public Works Administration (250,900)
Railroad Museum 4,900
Transfers to Other Funds 2,200,000
$ 2,200,000
Water Funds:
Water Operations 369,000
$ 369,000
3 FISCAL IMPACT
The adjustments identified will increase revenues by $2,200,000 and increase expenditures by $2,569,000.
VISION, MISSION, VALUES, AND STRATEGIC OUTCOMES
The City’s Vision, Mission, and Values set the standard for the organization, establish priorities, uniformity and guidelines; and provide the framework for policy decision making. The Strategic Outcomes were implemented to provide a pathway to achieving the City’s Vision. This item aligns with Strategic Outcome No. 6: High Performing Organization – Strengthening City services through innovation and excellence.
OPTIONS
1. Approve staff’s recommendations.
2. Provide alternative direction to staff.
ATTACHMENTS
1. Fiscal Year 2024/2025 Budget Amendments
Approved by:
Andrew Vialpando
City Manager
Prepared by:
Susan Kamada
Administrative Services Director